Saudi Arabia has made significant strides in the global startup ecosystem, with its capital, Riyadh, climbing 60 spots over the past three years to rank 23rd among the top 100 emerging startup ecosystems worldwide. The city’s impressive rise has been driven by high-growth sectors such as artificial intelligence, fintech, cybersecurity, smart cities, digital health, and infrastructure, which align with Saudi Arabia’s Vision 2030 strategy for economic diversification. Riyadh’s progress is reflected in the growing number of significant venture exits, including the notable $1.1 billion exit of insurtech company Rasan.
These exits demonstrate investor confidence and a maturing venture environment. Public-sector institutions like Monsha’at, the General Authority for Small and Medium Enterprises, have played a crucial role in promoting regulatory reforms, supporting accelerator programs, and building infrastructure that fosters long-term innovation and entrepreneurship. Since 2018, Riyadh’s startup ecosystem has attracted more than $2.6 billion in venture capital investment.
The city’s strong performance in the 2025 Global Startup Ecosystem report, which analyzed data from over five million startups across 350 ecosystems worldwide, highlights its accelerating maturity, increased access to capital, and robust infrastructure development.
riyadh’s startup ecosystem progress
Monsha’at recently led a group of five potential Saudi unicorn SMEs to participate in VivaTech 2025, Europe’s leading technology and innovation exhibition, as part of the Saudi Unicorns initiative.
This project aims to help high-potential, fast-growing companies in promising sectors reach valuations of over $1 billion. The four-day event in Paris provided an opportunity for Monsha’at to expose these startups to global best practices, industry insights, and strategic networks with leading global stakeholders. Saud Alsabhan, Vice Governor of Entrepreneurship at Monsha’at, stated, “Our participation at VivaTech 2025 was a tremendous opportunity to not only showcase several of the best young startups and concepts coming out of the Kingdom, but also a chance to allow some of our best tech entrepreneurs to share insights about the Kingdom’s booming startup ecosystem with leading global investors and innovators.”
The Monsha’at-led Saudi cohort included five startups: Telgani, a digital car rental platform; Soum, a second-hand sales app; Webook, a digital engagement platform; SiFi, which provides financial solutions to Saudi companies; and Rewaa, a retail tech company serving clients across the Kingdom.
These companies showcase the dynamism of Saudi Arabia’s growing e-commerce, transportation, entertainment technology, fintech, and retail tech sectors. With growing momentum in digital innovation and government support, Riyadh is positioning itself as a serious contender in the global tech landscape, challenging traditional hubs from Silicon Valley to Singapore. As Saudi Arabia continues to invest in its entrepreneurial ecosystem, the world can expect to see more innovative startups and unicorns emerging from the Kingdom in the coming years.